So you have joined the NFT space and are probably asking, what on earth are blue chip NFTs? I understand the bombardment of different terms can be overwhelming.
But don’t worry. In this article, I will be covering all aspects of blue chip NFTs so you can navigate the space with ease. So without further ado, let’s jump right in.
What are blue chip NFTs?
Blue chip NFTs are collections that have a strong reputation, stood the test of time, and have a solid community. Two notable examples are Bored Ape Yacht Club (BAYC) and CryptoPunks. They are considered safe plays that are sustainable.
What makes an NFT a blue chip?
Brand – for an NFT to be a blue chip it needs to appeal to the masses. It cannot be isolated to the crypto community, instead, it needs to be part of pop culture. Think BAYC. This NFT collection has built a global name for itself. From Eminem to Jimmy Fallon this abstract collection of monkey pictures has built an iconic brand.
Community – ultimately NFT projects fail without a strong community. There needs to be an active community interacting with each other. This can be through Twitter, in person, or even the metaverse. Often projects facilitate this by providing utility to the NFT. For instance, NFTs can be used as tickets for exclusive events and concerts.
Reputation – the reputation needs to be stellar. Scams and controversy are red flags. The team behind it needs to have a proven track record. Without a strong reputation, there is no confidence in the brand.
Battle-tested – it needs to have stood the test of time. In an industry notorious for pump and dumps, an NFT blue chip needs to remain valuable for a considerable length of time. This essentially proves that demand for the project is constant rather than being part of a hype cycle.
How to spot future blue chip NFTs
To spot the above attributes you need to keep your ear to the ground. The number one way to find future blue chip NFTs is to browse crypto Twitter. Follow popular NFT influencers and pay attention to what collections are being talked about.
Identify these NFTs and do a deep dive. Research the project. Find out if they have utility and a strong team behind it. Participate in the discord chats to get a gauge of community strength. These are all great methods to identify the next blue chip NFT project.
Things to avoid
Anonymous team -avoid anonymous teams at all costs as they can quickly abandon the project without any backlash. Pick established teams that can be penalized based on poor results.
Hacks – the last thing to avoid is hacks. This industry has exploded in the past few years which has attracted some unwanted attention.
This is why it’s important to research the project. Check the website. If it’s slow, poorly written, or lacks depth then this could be a red flag. Additionally, check social media. Good signs are a lack of bots and a verification bag.
But at the end of the day, the number one way to protect yourself from hacks is to use a hardware wallet. The hardware wallet I recommend is the ledger nano X. You can check out my review by clicking here
Examples of bluechip NFTs
In my opinion, two NFTs are undeniably blue chips. You probably guessed it, they are Bored Ape Yacht Club and CryptoPunks. In this section I will be providing a brief synopsis of each:
CryptoPunks – this project was founded by John Watkinson and Matt Hall in 2017. In essence, this project features a collection of 10,000 randomly generated avatars. The avatars are characterized by pixelated humans, apes, or zombies.
Arguably the most reputable project it has slowly developed from a niche community to the behemoth it is today. Even celebrity tennis player Serina Williams has bought into the craze and some are selling for upwards of $2 million. To learn more about CryptoPunks read my previous article NFT Profile Pictures: The Rise of Avatar Projects.
Bored Ape Yacht Club – this is a collection of 10,000 cartoon apes. It is an exclusive club with a brand that is unrivaled. With over $1 billion in sales, there is no denying that this project is an absolute powerhouse. Like CryptoPunks this project has infiltrated pop culture and for good reason.
Not only that, but this collection rewards its community. For instance, by holding the NFT users get access to a 3D metaverse where they can interact with other community members. Users also get exclusive merch. Ultimately, this utility has created a brand and community that is unrivaled.
Final Thoughts
Overall, blue chip NFTs are just fundamentally strong projects. They have a great team with a proven track record. The problem with the NFT industry is that is young and therefore many projects haven’t developed into blue chips. But as the industry continues to develops, more NFTs will fall into this category. I hope you found this article useful and thanks for reading.
Want to learn about NFT minting? Click Here to read my previous article.
